Neglected All-Weather Strategies

Combining overwriting and hedging makes sense, regardless of what the stock market is doing. Why the VIX is unlikely to stay subdued.

The low-Volatility environment for U.S. equities has lulled many investors into complacency. As a result, they've ignored some of the most elemental options strategies, including hedging and overwriting. Combined, these strategies can both increase a portfolio's yield and provide costless protection, delivering a win-win for investors.

Since stocks' low-volatility period began in January 2013, the VIX has swung between 11 and 23,...